UBS says O&G producers no longer tracing commodity priceya...I figured that out.....nice to have it confirmed though.....
Oil Equities Are Not Rising Along With Stronger Oil and Gas Prices, UBS Says
11:09 AM EDT, 07/26/2021 (MT Newswires) -- UBS on Monday said the shares of oil and gas producers are no longer tightly linked with the commodity prices, which are trading at or near multi-year highs on rising demand.
"While the equities actually hung in, they've lagged the commodity considerably (~10% on average) over the past month, and have broken from the commodities whether its oil price, natural gas price or refining "cracking" spreads," the investment bank noted. "The uncertainty is tied to many different threads including volatility, but the focus is currently on the ultimate impact of the delta variant. And while new infections rise, several are pointing to the lower hospitalizations and mobility measures as offsets. Hence how the equities have mirrored the 10-year. Gasoline consumption internationally and av/jet globally are the indicators investors are watching incrementally. As for the energy equity trading indicators, "toppy-ness" from ~5 weeks ago has largely reverted with RSIs and prices relative to moving averages are now comfortably towards the lower end of ranges."